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September 27, 2006

Google That! $250 million in Venture Capital for Visto!

posted by MR WAVETHEORY at 9/27/2006 04:14:00 PM
You know that venture capitalists are back in droves and clamoring for deals again when you read that Visto, a nine year old startup, that still hasn't made any money has just raised another $51 million in funding. Total funding: $250 million - yes, a quarter of a billion! With that type of money, who needs to go public!

Visto rakes in another $51M in funding, adds ex-AOL chief to board Sep 27, 2006 REDWOOD CITY, Calif.—Visto Corp. will have no trouble paying its lawyer fees. The mobile e-mail service provider raked in another $51 million this week in a funding round led by Oak Investment Partners. The haul follows a $70 million round that closed last November; Visto is believed to have raised a staggering $250 million in funding during its nine-year history.

I think it is interesting to compare the two dotcom babbies - Visto and Google. Visto is 9 years old and Google is 8 years old.
  • The former has burned boat loads of cash in an ultra competitive market where there are very few customers - namely carriers and device manufacturers.
  • The latter has developed a great set of technologies serving a wide consumer market.
  • The former has high profile people and lots of PR. The latter uses word of mouth.
On balance, I would say Visto is still living a dotcom lifestyle. What I find interesting is that venture capitalists today still have appetite for Visto type deals! Meanwhile, Visto is stuck in ligitation and the VCs are more than happy to foot the bill. I know who will for sure be making money in this deal - the lawyers!

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